Name and Location
Waterberg Joint Venture (JV) platinum project, Limpopo, South Africa.

Client
The Waterberg JV, comprising Platinum Group Metals (49%); Japan Oil, Gas & Metals National Corporation (37%); with empowerment partner Mnombo Wethu Consultants completing the balance.

Project Description
The Waterberg deposit consists of discrete, layered and continuous platinum group metal- (PGM-) bearing layers, starting at 140 m from the surface, with a consistent westerly dip. The deposit has so far been drilled for about 10.4 km northwards on strike. Geophysical surveys and drilling, to date, indicate that the deposit remains open down dip and on strike to the north-west.

The Waterberg Project has emerged as one of the world's largest undeveloped palladium discoveries. Currently, the inferred mineral resource for the Waterberg deposit stands at 287-million tonnes grading 0.94g/t platinum, 1.92 g/t palladium, 0.04 g/t rhodium and 0.25 g/t gold. The deposit remains open. Drilling is in progress across the JV area and directly north on the Waterberg extension along strike beyond the 8-km-long published resource.

The mine plan in the preliminary economic assessment (PEA) uses three decline clusters for access, owing to the shallow depth of the deposit. The shallow edge of the T layer is at 130 m vertical and the shallow edge of the F layer is at 220 m.

The planned mining method is all mechanised, including a combination of room-and-pillar mining on mineralised layers 3 m to 10 m thick, and long-hole open stoping on layers 10 m to 60 m thick. The decline ramps for underground access are planned to be developed to the shallow edge of the T and F deposit layers. From there, development ramps are all to be within the deposit along an apparent dip angle. This development approach is possible because of the thickness of the deposit and because it lowers waste development tonnes and costs.

Using a standard flotation mill at steady state, the project is expected to produce 655 000 oz/y of platinum, palladium and gold in concentrate, with copper and nickel as credits.

Value
Peak funding for the mine is estimated at R8.85-billion.

Duration
A two-year construction period from 2016 to 2018 is planned.

Latest Developments
PTM has awarded the independent qualified person role for the ongoing Waterberg prefeasibility study (PFS) to South Africa-based and global engineering firm DRA Mineral Projects. The award of the contract to DRA follows a competitive tender and adjudication process.

The company has also announced the acceleration of drilling programmes on the Waterberg JV and Waterberg extension, with 24 drill rigs now in operation. Including drilling contractors under the company's supervision, about 180 people are involved in the activities at Waterberg.

The programme focuses on infill drilling to delineate indicated resources on the Waterberg JV, thereby expanding known resources northward for several kilometers on the extension.

Key Contracts and Suppliers
WorleyParsons (PEA) and DRA Mineral Projects (qualified person role for the ongoing Waterberg PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Platinum Group Metals, tel +27 11 782 2186, +27 11 782 4338 or
email info@platinumgroupmetals.net.
Japan Oil, Gas & Metals National Corporation public relations division, tel +81 3 6758 8106.
Worley Parsons, tel +27 11 218 3000 or fax +27 11 218 3100.